Phuket land prices have tripled since tsunami

The 2004 tsunami has not affected land prices in Phuket, which tripled over the past 10 years in the wake of booming tourism.

Land prices near Patong beach are the highest in Phuket, at around 180 million baht a rai, according to an AREA survey. (File photo by Tawatchai Khemgumnerd)

The increase averages 14% a year from 2004 to 2014, according to Sopon Pornchokchai, president of Agency for Real Estate Affairs (AREA), a centre on real estate research and valuation.

The areas with the largest price increases are Maprao and Por bays, up 500% in the past 10 years, due to the low base of around 2 million baht a rai in 2004.

The most expensive plots today are on Patong beach, at 180 million baht a rai or 450000 baht a square wah from 40 million baht a rai in 2004, Mr Sopon wrote in a statement on Monday, quoting an AREA survey.

Land on the west coast, which was hit the tsunami, is now much more expensive than plots on the east side, mainly due to more spectacular views and beaches.

Five months after the Indian Ocean tsunami, the prices on the west coast were flat before they moved up and then jumped after 2005.

Notably, land prices on the east coast continued to increase in the five months after the tsunami, largely due to local belief the area will not be hit by the tidal waves.

Mr Sopon predicted the land prices on the resort island would continue to increase despite occasional setbacks such as political strife and sluggish tourism.